Dope Tech Episode 2

<<@joeschmow4568 says : That's funny. Are they playing dumb? Its pure negligence mixed with extreme greed driven by bloated, overconfident egos. People are going to jail, even with our weak-ass white-collar crime laws.>> <<@pwesiti says : Recessions and crashes are a feature not a bug.>> <<@cameronclark3725 says : Did you get through this entire interview with talking about interest rate spreads, and the fact that SVBs clientele was higher risk because of the lack of diversification i.e. they were all start ups? An undergrad in finance knows more than you guys.>> <<@TheLastLineLive says : Capitalism is designed for maximum profits. Regulations get in the way of that. It’s a system that can make one very wealthy, but risk and volatility comes with the territory, because that profit has to be extracted from somewhere, and you might be the one it extracts from.>> <<@bencoomer2000 says : Privatized profits, public risks. Lemon socialism.>> <<@mrsansen8619 says : Jail EVERYBODY higher up on the totem pole than "janitor". And jail then for 48 months for starters. In whatever prison takes the least money, Some texas hellhole that serves cheese sandwiches EVERY day? Perfect. Companies who lost all their money? YOU should be awake enough to know better. There should be a 49 dollar limit on payouts from the government to all companies involved.>> <<@patrec7638 says : So after FTX flopped, but was saved by the fact Bankman-Fried had close ties to Democrats and now SVB is proven to follow in lock step with the progressive manifesto, you'd think people might be a little wary of any regressives giving insight into any financial matters. But I guarantee you, this won't be the last failure we see due to the stewardship of regressive values, wokeness and fraudulent DNC donor behaviour.>> <<@Hermanjackson89 says : Anyone who has been around for longer than 12 years, knows a credit crisis isn't over in two weeks. Makes me laugh seeing folks thinking this was all over so quickly. We are seeing a credit contraction that is gonna lead to a major contraction.>> <<@Anonymous-i9i says : Always great to see David on TYT!>> <<@wrongturnVfor says : When the government admits incompetence, rest assured they are hiding something way more sinister. It has been 2 months and TYT is as clueless about everything as when it all started. At this point I have to believe they are playing dumb on purpose. People who take pride in their tiny attention spans, move on, this is not for you,. Explain to me how any sort of regulations would have prevented an outflow of 42 billion dollars (25% of total capital) in one day from collapsing the bank which happened due to UNREALISED losses on paper in the SAFEST forms of investment aka Treasury securities. I am sure Andreeson horowitz being one of the main clients of the bank which has a ton of saudi money invested in it had nothing to do with the Entree capital, and Israeli firm starting the run for absolutely no valid reason. And I am sure it has nothing to do with Saudis announcing they will now support petroyuan instead of petrodollar. And I am sure all of that has nothing to do with USA paying money to all creditors excapt firms like andreeson horowitz or foreign tech firms whose tech pentagon wants to steal by doing a hostile buyout in this situation. Because you have chosen to be useful idiots in the hands of corporations, Let me break it down for you. SVB had about $200 billion in assets. Okay? so they held about 55% of it in long term assets LIKE but NOT limited to T-Bonds. So that leaves them with what $90 billion in short term assets? Do you know how much money was withdrawn from that bank in 1 day? $42 billion. That is insane. For context, JP Morgan Chase that has assets worth 3.2 trillion sees a daily deposit and wirthdrawal of about $50 billion around the world. That is not just withdrawal. IT is withdrawal and deposits. So for a bank the size of SVB, $42 billion is a lot as such but in one day? It is a death sentence. And the fact that ALL of those deposits went through shows you this WAS NOT a liquidity crisis The fact that about 1/4th of their capital was withdrawn in ONE day and the fact that ALL those transactions WENT THROUGH shows you that this was NOT a liquidity crisis. For context Jp Morgan chase sees only less than 2% of its capital changing hands everyday. That is deposits and withdrawls. The industry standard is 7%. SVB saw more than 25% withdrawn in ONE day. These banks were not in any crisis until wall street started fearmonegring about the bonds, spooked their investors and caused them to "refinance". Which was normal. Aka sell the T Bonds and re invest elsewhere. They were gonna lose a little money Which was 0.5 % of their capital and they set out the plan to raise that loss. That is not even close to a threat when you look at the fact that they had 45% assets in liquidity more than enough to cover daily transactions (even the increased ones in tech recession) And TYT are the same buffoons who in the same breath will say america is perfectly sound carrying 120% debt to GDP aka negative capital but somehow 0.5% loss of capital was damamging? Get a couple o neurons to share between the lot of you, please. But at this point in SVB saga, wall street screamed bloody murder fearmonegring about them causing a run on the bank and causing the collapse. Why? Because they wanted to short sell the shares of these banks and make money from that. And diversify into what? We are literally in a recession now. We were in an economic shutdown in 2020 when these banks were making money. Putting money in Mortgage based securities and auto loans and stocks is MORE risky than treasuries. And people need to realise, that these banks buying T bonds put money into the hands of treasury and then in hands of gvt through borrowed money which was used to fund the covid relief package. And you are dunking on that? Do you literally not understand how things work? Do you not know that T-Bonds arent the only things that get devalued when Fed rates go up? all previous lending that happened when fed rates were low is devalues. That includes Mortgage Based Securities, Personal credit bundles, Bonds of different companies - everything. And you can see all these in a bubble right now too. What you are asking for is for these banks to have chosen another route to collapse instead of T bonds that helped fund covid relief money. But on top of all of that it does not explain why only these banks collapsed, though. Because "devaluation" of T bonds doesnt happen until they are sold. Until then they are unrealised losses which have no reason to cause a panic in investors. And need I remind you the collapse happened when they decided to diversify their assets because wall street created a panic giving the excuse to Entree capital to start the run. This is bolstered by the fact that T bonds do not explain Banks like Credit suisse going under which were subject to those regulations DAILY. Because giant withdrawls are exactly how those runs started and precisely why Credit Suisse did share buybacks to stop the run.And does not explain why KPMG gave a clan bill of health to SVB and Signature bank just days before the collapse. This is exactly how First Republic is collapsing right now and you bozos are still stuck on "regulation". Regulaitons are great but no amount of regulation in the world can stop a bank run once it starts. That is just a fact. The point is there needs to be enough confidence in the economy to not cause a run. Wall street doing this in the beginning of 2021 would not have caused a run, now it did because of where the economy is at right now. (for those interested, the same mechanism was at play when Binance caused an intentional run on FTX and TYT even then like clueless parrots screamed incompetence. Guys please dont be this dumb, you make progressives look like idiots. Do I have to remind you that Biden's biggest donors are big banks? banks like JP morgan chase and all are massively suffering because of his dumb SWIFT sanctions because the world is dedollarising and the fed's QT and rate hikes are causing them a cash crunch. Since fed cannot print more money because of devaluing dollar due to dedollarisation and treasury bonds are not in demand because of the same reason, Biden had to figure out another way of handing the banks the money. SO this. Basically the "controlled collapse" of smaller banks means JP Morgan and chase buys these banks out and also takes on all their clients. They canibalise the small fish to become bigger and swim in more money. Then FEd and treasury do a "refinance" of the liabilities, aka replace the treasury bonds of mortgage backed securities with T bills. The T bills (not to be confused with T bonds) are at a steep discount because of the debt ceiling drama. When the US doesnt actually default, the T bills will rise in value that banks can sell and make a ton of money. This is called quantitative buyback and it shifts the money from the treasury to the banks. In the meantime firms like blackstone auction off the liabilities of these banks to VC and investment firms at steep discounts. They make money and blackstone makes money. And who bears the brunt? We do. First because of "extraordinary measures" (which means treasury can pick and choose which people it will pay interest and principal to and which it will just swindle out of money) due to debt ceiling circus the treasury refuses to pay the money back to social security and medicare. Yes, the government took the money in those programs and has been investing it in the Treasury for decades. The interest is also re invested. So they are basically cutting those programs without cutting those programs. Second, There is a special banking program that allows banks to do emergency borrowing behind the scenes which is backdoor QE and it devalues to the dollar and increases inflation so we pay that money out of pocket. Third, fed raises rates to control said inflation so we pay more in terms of credit card debt, mortgage, auto loans etc. Fourth all That money FDIC is using to backstop banks comes from our deposits in banks. We are paying 4 times for Biden to enrich the banks and TYT is being a total fool here jumping up and down on partisan lines. Wake up and start educating yourself so you can report some actual sense to people.>> <<@Peter-ll7vq says : what the? , horrible report and horrible video. It's very well-known why this bank when down, nice try on the word salad and not reach any point. Cliff note, Woke bank with a diversity hire woman that shouldn't have been running it. I was waiting for them to blame Trump>> <<@protosonic17 says : Come in buy america's favorite apple pie. Now with tragedy and disadbantage baked eight in>> <<@Mr.Boring_Man says : 2012 talking points>> <<@phillyphil1513 says : 1:21 - here John recaps the famous scene from 2015's THE BIG SHORT where Steve Carrell's character (based on the real life Steve Eisman) pays a visit to the ratings agency Standard & Poors located at 25th and Broadway, and they get the "bombshell revelation" dropped on them from the S&P rep that they (S&P) have basically been LYING/FALSIFY the Sub-Prime Bond Ratings all this time for no other reason than they're competing for business with the ratings agency Moodys located just down the street (at which point both Carrell and his colleague promptly sh!t their pants)... yeah, this "sickening feeling" would be likely same as that felt by those scammed by Bernie Madoff when the Housing Market finally collapsed, when Sam Fried/FTX Crypto collapsed, when Beth Holmes/Theranos was arrested, when Charlie Javice/Frank was recently arrested etc. etc. now something those with the courage to pay attention will quickly recognize is how what all of this represents is a RECURRING THEME.>> <<@duanecrockett4086 says : Forgetting the Silicone Valley and the depression it might entail I'm voting for VP Kamala in order to finally see a FEMALE PRESIDENT if Joe Joe should kick the bucket ! AMERICA WTFU U NEED A WOMAN TO STRAIGHTEN YOUR DYING ASS OUT ! PLUS U have discriminated against WOMEN since the country was formed and WE THE PEOPLE NEED CHANGE NOW ! 🧢>> <<@michaelbuehler3897 says : "EXPOSED: Silicon Valley Bank Collapse Cause By GROSS Incompetence" *shocking*>> <<@rendymonyab says : If the the government wants to prevent systemic risk, they need to find a way to be honest informed of what investments each bank is making. Then they can cross reference to see what the whole banking system is investing in, and thereby spot issues of group think and bubbles and such. I think the trick is that this agency's reporting needs to be SUPER isolated from all other government agencies (example the SEC) and law enforcement (FBI) etc. This particular agency sole role is finding systemic risks and mitigating that, not tracking money laundering or other illegal behavior.>> <<@SeeTheWholeTruth says : Aww... but everything is better and smarter in California right? LOL>> <<@sethfarmer7802 says : Idk maybe 6 years later give or a take a year lol I mean it didn’t take long once they actually regulated them a tiny a bit again 🙄💩💯>> <<@donstaples4812 says : If you have enough money, you can open a bank (a tax write-off), then simply borrow money from it ( not taxable income), and write off the interest on your taxes. Overall, its a big money gain at the loss of the tax payers. And, the govt may bail your bank out if you overdraw it.>> <<@_rob_. says : Duh>> <<@ericpmoss says : And that asshole Barney Frank made fun of Bernie for not being a "sophisticated thinker" -- Frank ended up being on the board of the one of the banks that went under and wanted bailing out.>> <<@goldeneastgun says : Crooked bankers, corrupt politicians and a supreme court comprised of an accused rapist and self dealing corporate puppets. The system is crumbling right before our eyes. It's a sham. It's dystopian. And it's over. Grab what you can and protect your family.>> <<@jacobhholt says : Sometimes you just gotta take away the cookie jar.>> <<@ConsciencepartyUSA says : There’s also the phrase don’t put all your eggs in the same basket, right?>> <<@dc100dc100 says : They didn’t have a compliance officer for 9 months. They either didn’t want one, or no one wanted the job. That’s a huge red flag and should have set off alarms.>> <<@damionsmith5444 says : If you call intentionally reckless gambling with other people's money to maximize corporate profit "incompetence" you guarantee it will happen again.>> <<@johnself4437 says : Sounds like republican party, supreme court Justices, democrats from time to time. I wonder why everyone gets away with discrepancies and dont get held accountable for.>> <<@lyannatargaryen3223 says : If any average American was as collasally bad at their jobs as these clowns or intentionally negligent with taking risks and losing, we would be fired. Still waiting, but they'll probably get bonuses.>> <<@lyannatargaryen3223 says : Why is a group of unelected goons allowed to make these kinds of decisions in the first place? The Federal Reserve shouldn't be a thing, unless they and their decisions are held accountable by the people.>> <<@ShawnHCorey says : They have already figured out how to stop this in the future. It was call the New Deal.>> <<@NathanTarantlawriter says : "Failure to take forceful enough action." That seems to be the Democrat motto.>> <<@irishlady30 says : Funny how nobody's watching the banks, we haven't learned from 2008? Banks cannot regulate themselves 🙄🙄🙄🙄🙄>> <<@BryantPP says : Legal "tender", such a bizarre term.>> <<@nostrilnick says : These people know they are playing with house money. If they gamble and make money, they keep the profits for themselves. If they lose, we bail them out. There is no downside.>> <<@GX328382 says : Never had to worry about this when Trump was in power>> <<@richardreese8038 says : Lol TYT just catching on. This report is whack we all know what happened. Barnie Frank is on the board>> <<@edi9892 says : They left out that SVB management cared more about wokeness than sound investment. More importantly, they made at least half a dozen bad investment decisions. Besides not diversifying, they didn't pay ANY insurance against bad investments!>> <<@dexterplant778 says : I guess in the only way I can see, by not actually having any money (ie) being poor means that if my bank fails I won't be out nothing more than a monthly social security deposit. F U bank's!>> <<@dennishehl2214 says : Like trump , gross incompetence>> <<@xnreyescj says : so the CEO Greg Becker of SVB bank was also a member of the SF Fed? Awesome, cool story bro.>> <<@WhatupdoeTV313 says : But wait republicans said svb failed because it was “too woke” you mean there’s a logical explanation?>> <<@dbunik44 says : 6:20...I agree with Woz, I thought it was over for Cramer when Stewart dog-walked him on the Daily Show, I thought he killed Kramer's show like he did Crossfire, but when you realize journalism has denigrated into PR and stenography, it's not that surprising>> <<@Juan-os4hs says : But... This bank's board was fully DEI compliant... And this bank practiced ESG guidelines... Isn't that what leftist care about...>> <<@danielwolf8365 says : This will definitely keep happening. Bankers got away with decimating the world's economy with no consequences, and they even got bailed out completely. "Too big to jail" and "Too big to fail" are concepts that shouldn't exist in a capitalist society with a functioning justice system.>> <<@GhostOnTheHalfShell says : On Bloomberg blame for First Republic’s woes was also placed that people burning thru their accounts because of inflation. Both individuals and businesses. To paraphrase B Clinton: It’s the inflation stupid. At the same time BofA is gloating over a down turn cutting their wage costs. Economic policy at war with reality.>> <<@origamikami3486 says : Yet the CEO is walking free>> <<@tyronesmith1626 says : Liberal Banks and democrats have become a mess>> <<@beeforeal5497 says : Incompetence doesn't matter as long as there's diversity.>> <<@judyluvrevolution6314 says : The answer to is to reinstate glass steagle immediately to block banks from taking risk with depositor's money.>>